The limit in 2008 for fica tax was 102,000. so if a self-employed business owner makes $108,000 in one year, how much in "continuing" medicare tax will they have to pay? (medicare tax is 1.4% for individuals and 2.9% for the self-employed.)

The medicare tax will amount to $174.

Step-by-step explanation:

As given, there is a self employed person who makes $108000 in a year. the limit for FICA tax was $102000, so excess amount the person makes is =

Also, given is that the medicare tax for the self-employed is 2.9%, so the person will pay 2.9% or 0.029 of the excess amount. This value becomes:

= $174

So, the correct answer is $174.

arrange the equations with like terms in columns.

analyze the coefficients of x or y.

add the equations and solve for the remaining variable.

substitute the value into either equation and solve.

check the solution.

step-by-step explanation: